Question

This is a 3 part question. Please answer all.

Required: a. Firm A has a margin of 10%, sales of $530,000, and ROI of 18%. Calculate the firm's average total assets. b. Firm B has net income of $72,000, turnover of 1.50, and average total assets of $870,000. Calculate the firm's sales, margin, and ROI. c. Firm C has net income of $142,000, turnover of 1.91, and ROI of 23.20%. Calculate the firm's margin, sales, and average total assets. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm A has a margin of 10%, sales of $530,000, and ROI of 18%. Calculate the firm's average total assets. (Round "Turnover to 1 decimal place.) Average total assets Required Required B >

Answer 1

a.

Margin = 10%

Sales = $530,000

Return on investment = 18%

Average total assets = ?

Margin = Net income/Sales

10% = Net income/530,000

Net income = $53,000

Return on investment = Net Income/Average total assets

18% = 53,000/Average total assets

Average total assets = $294,444

Average total assets

$294,444

b.

Margin = ?

Sales = ?

Return on investment = ?

Net income = 72,000

Average total assets = 870,000

Turnover = 1.50

Turnover = Sales/Average total assets

1.50 = Sales/870,000

Sales = $1,305,000

Margin = Net income/Sales

= 72,000/1,305,000

= 5.5%

Return on investment = Net Income/Average total assets

= 72,000/870,000

= 8.3%

Sales	$1,305,000
Margin	5.5%
Return on investment	8.3%

c.

Margin = ?

Sales = ?

Return on investment = 23.20%

Net income = 142,000

Average total assets = ?

Turnover = 1.91

Return on investment = Net Income/Average total assets

23.20% = 142,000/Average total assets

Average total assets = 612,069

Turnover = Sales/Average total assets

1.91 = Sales/612,069

Sales = 1,169,052

Margin = Net income/Sales

= 142,000/1,169,052

= 12.1%

Margin	12.1%
Sales	$1,169,052
Average total assets	$612,069

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